IgniteASX:IGN 46 Gross Margin % is 12.67% as of Dec. 2025, which is 4% above its 10-year median of 12.16. GuruFocus rates ASX:IGN with a GF Score™ of 46/100 and a GF Value™ of A$0.38 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,007 Business Services companies, Ignite ranks worse than 88.08% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Ignite's Gross Profit for the
six
months ended in Dec. 2025 was A$4.85 Mil. Ignite's Revenue for the
six
months ended in Dec. 2025 was A$38.25 Mil. Therefore, Ignite's Gross Margin % for the quarter that ended in Dec. 2025 was 12.67%.
The historical rank and industry rank for Ignite's Gross Margin % or its related term are showing as below:
ASX:IGN'
s Gross Margin % Range Over the Past 10 Years
Min: 11.49 Med: 12.16 Max: 22.64
Current: 13.06
During the past 13 years, the highestGross Margin % of Ignite was 22.64%. The lowest was 11.49%. And the median was 12.16%.
ASX:IGN's Gross Margin % is ranked worse than 88.08% of 1007
companies
in the Business Services industry
Industry Median: 34.46
vs ASX:IGN: 13.06
Ignite had a gross margin of 12.67% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Ignite was 0.90% per year.
Ignite (ASX:IGN) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Ignite had a gross margin of 12.67% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Ignite Gross Margin % Related Terms
Ignite Gross Margin % Historical Data
* Premium members only.
The historical data trend for Ignite's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ASX:IGN vs KFY, RHI, TNET: Gross Margin % Comparison
For the Staffing & Employment Services subindustry, Ignite's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ignite Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Ignite's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ignite's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Ignite (ASX:IGN) has a Gross Margin % of 12.67% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Ignite and its competitors. This is near median its historical median of 12.16. Over the past decade, Ignite's Gross Margin % has ranged from 11.49 to 22.64. According to the industry distribution chart, Ignite ranks #887 out of 1007 companies in the Business Services industry, placing it in the top 88.1%.
Is Ignite's Gross Margin % too high?
Ignite's current Gross Margin % of 12.67% is near median its 10-year median of 12.16. Over the past 10 years, this metric has ranged from a low of 11.49 to a high of 22.64. The Business Services industry median Gross Margin % is 34.46. Ignite's value of 12.67% is 63.2% below this industry median. Based on the distribution chart, Ignite ranks #887 out of 1007 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Ignite has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ignite's Gross Margin % compare to KFY and RHI?
According to the Business Services industry distribution chart, Ignite ranks #887 out of 1007 companies for Gross Margin %. This places Ignite in the lower half of its industry. The industry median Gross Margin % is 34.46. Ignite's value of 12.67% is 63.2% below this benchmark. Historically, Ignite's own Gross Margin % has ranged from 11.49 to 22.64 over the past decade. While the company's 10-year median is 12.16 vs. the industry median of 34.46, Ignite has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Business Services company?
The median Gross Margin % among Business Services companies is 34.46, based on 1,007 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ignite's current Gross Margin % of 12.67% is 63.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Ignite and its competitors. For the Business Services industry, the median Gross Margin % is 34.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ignite's current Gross Margin % is 12.67%, which is near median its own 10-year median of 12.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ignite stock overvalued right now?
Based on GuruFocus' analysis, Ignite (ASX:IGN) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.38, compared to a current price of A$0.71 — trading 86.8% above its estimated fair value. The current Gross Margin % is 12.67%, which is near median its 10-year median of 12.16 and 63.2% below the Business Services industry median of 34.46. Ignite's overall GF Score™ is 46/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Ignite (ASX:IGN), the current Gross Margin % is 12.67% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ignite (ASX:IGN) Overvalued in 2026?
Based on GuruFocus' analysis, Ignite stock appears to be overvalued.
The current stock price of A$0.71 is trading 86.8% above its estimated GF Value™ of A$0.38.
GuruFocus considers Ignite to be Significantly Overvalued.
Key valuation signals for ASX:IGN:
Gross Margin %: 12.67% (near median its 10-year median of 12.16)
GF Value™: A$0.38 vs. price of A$0.71 (86.8% above fair value)
Industry Position: 63.2% below the Business Services median (#887 of 1007)
No single metric tells the full story. See the ASX:IGN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ignite Ltd is a professional employment services provider, specializing in permanent, contract, and temporary placements across all levels of seniority. The company segments include Specialist Recruitment and Managed Services. Its geographic areas are Australia and New Zealand. The company generates maximum revenue from Specialist Recruitment.
46GF Score
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